As is well-known to those versed in the woodworking arts, tools have been provided in the past for cutting wood plugs, as for insertion in countersunk screw holes, and the like. Prior plug cutters have not been entirely satisfactory, either for use in mass production of plugs as in a factory, or less rigorous use, as on the site by cabinet makers, wooden boat builders, and the like. In high production usage overheating of tools is a problem, as is removal and retrieval of cut plugs. In low volume plug cutting, as by a hand-held prime mover rather than with a drill press arrangement, an important problem is in ease of maintaining the tool against undesired lateral movement. The prior art devices have not been entirely satisfactory in these respects.